Legendary clothier Levi Strauss got an upgrade Tuesday, as its Relative Strength (RS) Rating rose from 69 into a higher percentile with a 74 rating, out of 99. It's a promising development, but is LEVI stock a good candidate to buy or add to a watchlist?
On the positive side, Levi Strauss stock is forming the right side of a long cup base that began in February. And its stock has risen mightily since hitting the bottom of the cup at 12.41 in early October. Since then it's risen 36% to close at 16.93 on Tuesday, up 3% for the day.
Levi Strauss Stock A Work In Progress
It might not be prudent to hastily pull the trigger on a buy though. The San Francisco-based company known for its comfortable, trendy denim jeans and other apparel has reported lower year-over-year earnings for at least the last four quarters in a row. Revenue growth has also been weak over the last four quarters: -6%, up 6%, -9% and then zero growth last quarter.
Its ratings reflect both its weakness and its promise. Levi Strauss has a feeble 26 Earnings Per Share Rating and a better but still less than ideal 65 Composite Rating. So it's kind of surprising to see that Levi Strauss stock has a B+ Accumulation/Distribution Rating on an A+ to E scale. The B+ rating means that big funds are buying more of its shares than selling.
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Buy Point Not Far Off
Levi Strauss stock is working on a cup without handle with a 19.36 buy point. See if the stock can clear the breakout price in heavy volume.
Levi Strauss stock earns the No. 10 rank among its peers in the 28-stock Apparel-Clothing Manufacturing industry group. Ralph Lauren and PVH Corp. are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, a stock's relative price strength is a good indicator.
IBD's Relative Strength Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
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